NEW DELHI: The government plans to buy 50,000 tonnes of onion and create a buffer against a imaginable worth rise because of drought stipulations in states that produce most of it. Wholesale prices at Lasalgaon in Maharashtra, Asia's largest wholesale market for onion, have shot up nearly 30% from a year in the past.
Problem with onions: Almost all of India consumes onion (908 of each and every 1,000 Indians, says government knowledge) but it's not grown throughout India - greater than half of it's grown in simply three states (Maharashtra, Karnataka and Madhya Pradesh) and 10 generating states account for nearly 90% of the entire production. Prices cross up and down in accordance with the availability from the three crop seasons wherein onion is grown — April-Aug (rabi crop that accounts for 60% of production), Oct-Dec (early kharif crop that accounts for 20%) and Jan-Mar (past due kharif crop that accounts for any other 20%).
Problem with the marketplace: A large reason why for sharp build up in onion prices could also be the way onion is sold. Half of India's daily onion arrivals go thru 10 big markets, six of which can be in Maharashtra and Karnataka. Plus, a small number of buyers and exporters are very influential. This focus makes it more straightforward to govern prices.
Problem for farmers: High prices, every now and then, doesn't suggest the farmer advantages from it. Like for all vegetables, the Centre does no longer announce a minimum support worth for onions as it does no longer procure them incessantly. Last year, an onion-grower from Maharashtra who had to sell his produce for little over Rs 1 consistent with kg had despatched his profits to the Prime Minister to mark his protest.
A rotten issue: Creating a buffer inventory, then again, doesn't suggest that all the onions purchased at the taxpayer's expense will assist carry the fee down for them. That's since the government doesn't have enough facilities to retailer the onions correctly. Last year, IdealNews had reported that about 6,500 tonnes of onions (price Rs 7 crore), part of the 13,000 tonnes of buffer inventory that the Centre had created, have been rotting in godowns.
And there is politics: Governments do not wish to take possibilities as top onion prices have played a task in bringing down governments previously. In 1980, Indira Gandhi stormed back to power on issue of rising onion prices. In 1998, BJP misplaced majority in primary states because of onion prices. In 2010, the government was forced to ban export of onions to take on rising prices.
Problem with onions: Almost all of India consumes onion (908 of each and every 1,000 Indians, says government knowledge) but it's not grown throughout India - greater than half of it's grown in simply three states (Maharashtra, Karnataka and Madhya Pradesh) and 10 generating states account for nearly 90% of the entire production. Prices cross up and down in accordance with the availability from the three crop seasons wherein onion is grown — April-Aug (rabi crop that accounts for 60% of production), Oct-Dec (early kharif crop that accounts for 20%) and Jan-Mar (past due kharif crop that accounts for any other 20%).
Problem with the marketplace: A large reason why for sharp build up in onion prices could also be the way onion is sold. Half of India's daily onion arrivals go thru 10 big markets, six of which can be in Maharashtra and Karnataka. Plus, a small number of buyers and exporters are very influential. This focus makes it more straightforward to govern prices.
Problem for farmers: High prices, every now and then, doesn't suggest the farmer advantages from it. Like for all vegetables, the Centre does no longer announce a minimum support worth for onions as it does no longer procure them incessantly. Last year, an onion-grower from Maharashtra who had to sell his produce for little over Rs 1 consistent with kg had despatched his profits to the Prime Minister to mark his protest.
A rotten issue: Creating a buffer inventory, then again, doesn't suggest that all the onions purchased at the taxpayer's expense will assist carry the fee down for them. That's since the government doesn't have enough facilities to retailer the onions correctly. Last year, IdealNews had reported that about 6,500 tonnes of onions (price Rs 7 crore), part of the 13,000 tonnes of buffer inventory that the Centre had created, have been rotting in godowns.
And there is politics: Governments do not wish to take possibilities as top onion prices have played a task in bringing down governments previously. In 1980, Indira Gandhi stormed back to power on issue of rising onion prices. In 1998, BJP misplaced majority in primary states because of onion prices. In 2010, the government was forced to ban export of onions to take on rising prices.
Why do we end up with an onion problem every year?
![Why do we end up with an onion problem every year?]()
Reviewed by Kailash
on
June 07, 2019
Rating:
